UK consumers, sensing new COVID restrictions, speed up spending - surveys


Credit card provider Barclaycard said spending rose at the fastest rate since the country was hit by the coronavirus lockdown. Separate data from retailers showed sales values at major store chains jumped by the most in nearly 11 years, excluding distortions caused by the timing of Easter.

LONDON: British consumers ramped up their spending sharply last month as some households stockpiled and began their Christmas shopping early ahead of possible new coronavirus restrictions, according to surveys published on Tuesday.

Credit card provider Barclaycard said spending rose at the fastest rate since the country was hit by the coronavirus lockdown.

Separate data from retailers showed sales values at major store chains jumped by the most in nearly 11 years, excluding distortions caused by the timing of Easter.

Consumer spending has been a rare bright spot for Britain's economy which posted a record drop during the second quarter, although mounting job losses are expected in the coming months.

Barclaycard said its measure of spending rose 2% year-on-year in September, driven by purchases of essentials and representing an acceleration from August's 0.2% increase. Pubs and bars also saw strong spending.

A quarter of consumers polled by Barclaycard said they had stockpiled last month in case of shortages of goods, as they did in the run-up to the coronavirus lockdown in March.

"While the nation's confidence in the UK economy has improved slightly, many are still cautious about the upcoming winter months, and the subsequent uncertainty it may bring has caused some to start stockpiling once more," said Raheel Ahmed, head of consumer products at Barclaycard.

A separate survey from the British Retail Consortium also pointed to strong spending.

Retail sales values at major store chains rose 5.6% in annual terms last month, the biggest increase since December 2009 when excluding distortions caused by the changing timing of Easter holidays.

The BRC said there were signs that consumers had brought forward some of their Christmas shopping.

"The industry is beginning to recover, however, forced store or warehouse closures during any future lockdowns could put paid to this progress," said BRC chief executive Helen Dickinson.

- Reuters
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

UK , consumers , spending , Christmas , coronavirus , restrictions ,

   

Did you find this article insightful?

Yes
No

100% readers found this article insightful

Next In Business News

Sime Darby's motor division recovery propels 1Q net profit to RM281mil
TNB posts 3Q net profit of RM1.01bil
Westports records stronger 3Q results as container throughput improves
KLCI tops 1,600 as Budget 2021 debates continue
RHB Research keeps Buy call on Sime Property, TP 88 sen
Honda Malaysia issues recall for 2,784 of 20-year old Accord, CR-V
Quick take: Vivocom continues to slide, GETS slips
Market cautious, eyes on Budget passage
OCK earnings remain highly sustainable on recurring income, says Kenanga
Maybank IB Research has Buy on IJM Corp, higher TP of RM1.98

Stories You'll Enjoy